JAPAN - TAXES ON ALCOHOLIC BEVERAGES

                          Surveillance of Implementation of Recommendations and Rulings

                                                     Communication from Canada

        The following communication, dated 17 January 1997, from the Permanent Mission of Canada to the Chairman of the Dispute Settlement Body, is circulated to Members.

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        My authorities have requested that I contact you with regard to the 24 December 1996 letter

from the US addressed to you requesting binding arbitration for the determination of the “reasonable period of time” for the implementation of the Dispute Settlement Body’s (DSB) recommendations concerning the dispute entitled “Japan - Taxes on Alcoholic Beverages”.

        As you are aware, Canada was a complaining party in this dispute.  Our concerns regarding the inconsistency of the Japanese measures were elaborated in our submissions to the Panel as well as to the Appellate Body.  Therefore, Canada has a particular interest in ensuring that Japan implements the DSB’s recommendations in an effective and meaningful manner.